Advance Ruling No. GUJ/GAAR/R/2024/03

In re: KOHLER INDIA CORPORATION PVT. LTD.

Date Issued: 5 January 2024
Source: 2024 (85) G.S.T.L. 468 (A.A.R. - GST - Guj.)
Views: 12

Summary

Recovery from employees - Canteen services - Contractual agreement between employer and employee - Applicant enters into a contract with a Canteen Service Provider (‘CSP’) to provide canteen facilities to it’s workers at factory premises - Invoice is raised by CSP with applicable GST on basis of consumption by employees - A part of canteen charges is borne by applicant whereas remaining part borne by employees is collected from employee’s salaries and paid to CSP by applicant - On application for advance ruling in respect of permanent employees - HELD : Applicant’s has employed around 1500 employees who have been provided with canteen facility, having a demarcated area in factory premises, in terms of Section 46 of Factories Act, 1948 - As per C.B.I. & C. Circular No. 172/04/2022-GST, perquisites provided by ‘employer’ to ‘employee’ in terms of contractual agreement entered into between employer and employee, are not be subjected to GST when same are provided in terms of contract - Therefore, deduction made from employees availing food in factory is not be considered as a ‘supply’ and thus no GST is be applicable on employee’s portion - Section 9 of Central Goods and Services Tax…